Couple families on single incomes are set to lose access to family payments when their youngest child turns 13, with the Turnbull government poised to split up its family payments package, so it can pass the element Labor supports through the Senate.
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Social Services Minister Christian Porter told ABC 24 on Wednesday there was "some obviousness" to breaking up the current bill that contains a number of changes to family payments.
Mr Porter said if there were "real savings on the table" because of what Labor had agreed to, it made sense for the government to bank the savings and then debate "the remainder of the package separately".
"We're working through procedurally ... how that might occur," he said.
Mr Porter said it was possible the bill would be split and voted on before Parliament rises at the end of next week.
The existing family payments package is due to be debated in the House on Thursday morning.
Earlier this month, Labor announced it would oppose the bulk of the Coalition's revamped family package - including proposed cuts to payments for single and grandparent carers.
But it has said it will support the government's bid to lower the age at which family tax benefit part B cuts out for couple families, which will save about $485 million over four years. Currently, families can claim the means-tested family tax benefit part B until their youngest child turns 16 or 18, depending on whether they are still at school.
But under the Coalition's latest proposal, from July 2016, the payment would stop when the youngest child reaches 13.
The splitting of the bill comes as the Coalition looks to the crossbench to pass the remainder of the $4.8 billion family payments package.
Measures yet to find support include an increase to family tax benefit part B by $1000 to families with children under one and cutting end-of-year supplements to recipients of both family tax benefit part A and part B.
With the Greens also opposed to the family payment changes, the government needs six of the eight crossbenchers to clear the Senate.
With Liberal Democrat David Leyonhjelm the only crossbencher to declare he will vote for the bill to date, support is not assured.
Independent Jacqui Lambie has said she will oppose the package, while other crossbenchers contacted by Fairfax Media have either expressed serious concerns about its impact on single parents and low-income families or said they were still undecided.
About 1.7 million Australian families receive family tax benefits.
Family tax benefit part A is paid per child, with the amount based on a family's income and the age of the child. Family tax benefit part B is paid per family and is designed to provide income-tested assistance to single parents and families with one main income.
